Colorado law requires common interest communities to adopt nine “responsible governance policies” addressing processes for key association issues. While many associations may have adopted such policies in the past, the law continues to change and oftentimes requires updates to various policies. Therefore, associations should periodically review their policies to ensure they remain consistent with currentGo to Newsletter
Amending Your Governing Documents Resources
Many boards struggle with the question of whether or not to amend their governing documents. Below are some standalone reasons to amend certain governing documents in order to protect your community, property values, and the volunteers who serve on the board. Articles of Incorporation Limit Liability of Directors The Colorado Revised Nonprofit Corporations Act (“NonprofitGo to Newsletter
Outdated and burdensome provisions within the HOA’s governing documents can serve to hinder operations and create confusion. Common examples include developer rights that no longer apply to the community, outdated assessment restrictions, and a lack of utilization of technological advances. The issue of outdated governing documents is especially important given the extensive recent legislative changesGo to Newsletter
Amending a set of covenants/declarations is no easy task. Declaration amendments typically require approval from owners representing at least 67% of the total votes in the association. To make things worse, sometimes we also see requirements for first mortgagee approvals, which means the association must obtain approval from banks to whom owners issue their mortgageGo to Newsletter
Although document amendments lead to desirable results, boards frequently refuse to utilize this tool based on commonly held preconceived notions and popular myths about the process. This article will focus on common misconceptions when it comes to document amendments and will provide you with the actual facts about this process, which apply to both preGo to Newsletter